The Indian tariff structure may not be tailor-made for Dell Inc’s strip-down business model, but the company sees its India revenues double to cross $1 billion, sooner than later.
With the addition of a manufacturing facility, expected to be up and running in Chennai by July, the company will have a most comprehensive presence in India outside of the US.
The company, which has announced plans to invest $30 million in Chennai, will dovetail the degree and size of future investments to the regulatory environment and the flexibility in the tariff structure that the country has to offer.
"The government needs to figure out how it can attract capital investment to make sure that at least 500 million of the next billion PC users come form India.
" A tariff structure that adds more than 20 per cent to the cost of a typical PC helps neither the consumer nor the vendor,” said Dell Inc Chairman and CEO Michael Dell.
Responding to the requirements unique to developing markets like India, Dell Inc. plans to experiment with different ways to go to market. “We opened our first store in Dallas, Texas, and have also set up some demo shops in China. In India, too, we will reach out to the customer in many ways,” he added.
After a strong presence in the enterprise market, Dell is now planning to focus on the consumer and small business segment in the country. "India will see a lot of action in the consumer space with lots of initiatives under Dell’s global consumer business being replicated here," he added.
Earlier in the day, speaking at the CII-CEO’s forum, Dell said, "It’s important for companies like Dell to help the second billion people worldwide, many from India, to get online so that they can participate and compete in the economy today and tomorrow."